There's no rationale for IMF tax dollars — and associated with that, American dollars that are part of the IMF funding — to bail out Chinese bondholders or China itself," he said.

While the new government in Pakistan - set to take oath on August 11 - is likely to cosy up to China, it is also in dire need of a financial bailout package. Many expect the Imran Khan-led government to approach IMF immediately after officially coming to power. The country has already received 12 bailout packages from IMF so far.

In case IMF shuts its doors, the country may have to further lean on China to borrow much-needed funds. There are already reports in Pakistani media that China has agreed to pour in more foreign exchange - over and above CPEC funding.